Lehman Brothers seems set to upstage SunCal today with an announcement to commit $3.7 million to demolish fire-hazard buildings at the failed SunCal Oak Knoll project. A previous announcement in October by SunCal, in which they claimed that $500,000 of Lehman Brothers bankruptcy estate money would go towards cleanup and hazard abatement at the site was unsupported by bankruptcy court docket information, and essentially proven false.
Continue reading Lehman Brothers Set to Upstage SunCal With Millions for SunCal Oak Knoll Cleanup
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Last week, SunCal announced that they had secured $500,000 from the Lehman Brothers bankruptcy trustee for “maintenance” at their stalled SunCal Oak Knoll redevelopment project. Past and more recent court documents prove the assertions by SunCal are hollow. Documents also show how SunCal brings very little, if any money to their deals, and they rely pretty much exclusively on their financial partner, such as Lehman for Oak Knoll, or DE Shaw for Alameda Point. On Wednesday we reported that, in a limited-distribution statement, SunCal responded to the concerns of Oakland hills residents worried about hazardous waste and fire hazards at the nearby SunCal Oak Knoll redevelopment project. Yesterday, Action Alameda News received a copy of a formal release by SunCal. And we received responses from both the City of Oakland and an Oakland hills resident. Updated: October 1, to include City of Oakland-provided demolition/abatement costs. The bankruptcy of the joint SunCal-Lehman Brother’s redevelopment project for the former Oak Knoll Naval Hospital has left the City of Oakland scrambling to procure a contractor to perform asbestos, lead-paint and fire-hazard abatement on City of Oakland property, while facing heat from nearby residents. Oakland Hills residents confirm that SunCal made promises to them about cleaning up buildings at the former Oak Knoll Naval Hospital site, similar to the promises SunCal is now making to Alameda residents about Alameda Point. But the bankruptcy of the joint SunCal – Lehman Brothers ventures and subsequent EPA investigation over asbestos debris piles left behind reveals a flaw in SunCal’s continued reliance on a single financial partner for their projects. Oakland Hills residents and Oakland City Council members agree that the stalled SunCal Oak Knoll Naval Hospital redevelopment project is a fire waiting to happen. As promised, here is the full text of the letter and claim sent to Oakland City Officials and U.S. Bankruptcy courts to file a claim of $115 million against the failed SunCal Oak Knoll Naval Hospital development in the Oakland Hills over an “imminent and severe” fire threat from the partially demolished buildings at the site. [Editor Note - it's already happened here in Alameda! Catellus, with their failed Alameda Landing project, left us with the asbestos-laden former army medical depot which burned to the ground earlier this year, spewing contaminants into the air, and sticking the City of Alameda with a bill for $1.5 million to clean it up.] Donald Mitchell, of Oakland, who we reported on last week, has filed a claim with U.S. Bankruptcy Courts for $115 million against SunCal/Lehman Brothers for the “extreme and imminent danger” at SunCal’s stalled Oak Knoll Naval Hospital project. SunCal’s problems are slowly creeping north to Oakland. Is the collapse of SunCal at Alameda Point next? |
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